Karman Industries Raises $20M to Commercialize SpaceX-Inspired Data Center Cooling Technology

Why It Matters

The solution tackles two of the biggest cost and sustainability pressures on data centers—energy and water—potentially reshaping the industry’s infrastructure economics. By leveraging aerospace engineering, Karman could accelerate the shift toward greener, more compact cloud facilities.

Key Takeaways

• Cooling system reduces equipment footprint by 80%
• Uses liquid CO2 refrigerant driven by rocket tech
• Energy consumption cut by over 50%
• Water usage eliminated, saving millions of gallons
• Raised $20 million, first compressors in Long Beach

Pulse Analysis

Data centers are the digital backbone of modern economies, yet their cooling infrastructure is a growing liability. Conventional air‑conditioning and liquid‑cooling loops can consume up to 40% of a facility’s electricity and require water volumes comparable to a small city, driving both operational costs and environmental scrutiny. As demand for cloud services surges, the International Energy Agency projects data‑center electricity use will reach 8% of U.S. consumption by 2030, underscoring the urgency for more efficient thermal management solutions.

Karman Industries addresses this challenge by transplanting SpaceX‑style high‑speed turbomachinery into the cooling arena. Its rotating compressor spins at 30,000 RPM—nearly ten times faster than traditional units—and circulates liquid carbon dioxide, a high‑efficiency refrigerant, through a closed‑loop heat pump. The result is a compact system that can shrink cooling hardware footprints by 80% while delivering the same thermal performance with less than half the energy input. Because the process relies on air‑side heat rejection rather than evaporative cooling, water consumption drops to near zero, eliminating the need for massive cooling yards.

The commercial implications are significant. With a $20 million Series A round, Karman is poised to begin production in Long Beach, targeting hyperscale operators seeking to lower capex and opex. If widely adopted, the technology could reduce data‑center power draw by billions of kilowatt‑hours annually and conserve billions of gallons of water, aligning with corporate ESG goals and tightening regulatory pressures. Moreover, the modular nature of the compressors may enable retrofits in existing facilities, accelerating the industry’s transition toward sustainable, high‑density computing environments.

Deal Summary

California startup Karman Industries announced a $20 million funding round to develop its high‑speed liquid CO₂ cooling system for data centers, leveraging SpaceX rocket engine technology. The capital will fund the construction of its first compressors in Long Beach later this year.